Bank eyes 30 new branches in ’09

Sun.Star Cebu <> Monday, July 6, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

WITH the aim of expanding its market reach amid challenging economic times, China Bank Corp. (China Bank) targets to open 30 new branches all over the country this
year.

In Cebu, the company is currently exploring three possible sites in Metro Cebu for new branches.

“We have to evaluate the market first,” said China Bank senior vice president and deputy group head for branch banking Samuel Chiong, stressing that the three sites are still “tentative.”

He said that among China Bank’s primary requirements for expansion in a new location would be the area’s population and potential to grow.

“Every branch we put up expands our market reach. Our long-term goal is to reach out to more markets,” said China Bank executive vice president and chief operating officer Ricardo Chua.

There are 15 full-service China Bank outlets in Cebu that offer personal, business and commercial banking services.

Presently, there are 225 China Bank branches nationwide—three of which are China Bank Savings. In Metro Manila, there are 129 branches, 44 in other parts of Luzon, 30 in the Visayas and 22 in Mindanao.

China Bank first vice president Alexander Eschua said the company aims to have a total of 267 branches this year, 291 by 2010, and 301 by 2011.

“The (period) from 2006 to 2011 will be the fastest growth in the branching history of China Bank. We made a three-year plan in 2006, targeting 200 branches. In 2007, we acquired Manila Bank, giving us 75 more licenses,” he said.

China Bank, the first privately-owned commercial bank in the Philippines, started with one branch in 1920.

“We are not only expanding but we are also looking at offering more services to our customers and improving our customer service. We will also focus on Cebu because, also speaking as president of SM Prime Holdings, Inc., I know that Cebu holds a very huge potential (for business),” said Hans Sy, China Bank vice chairman.

Last week, China Bank inaugurated the two-story China Bank Cebu Business Center at the Cebu Business Park (CBP), Cebu City.

The event coincided with the bank’s 61st anniversary in Cebu.

The business center is the first phase of China Bank’s planned development in CBP. The bank will construct a 14-storey class-A tower with a gross floor area of 7,621 square meters on a lot adjacent to the business center.

Filed under: Banking/Money/Investment, Business

PDS to beef up sales personnel of investment products in Cebu

Sun.Star Cebu <> Wednesday, June 17, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

WITH Cebu being considered as an educated market where there is growing appreciation for fixed-income securities as investment options, the Philippine Dealing System Group of Companies (PDS Group) sees the need to deploy more sales personnel in the province.

There are 16 licensed sales persons in Cebu. They are employed by dealers, issuers or brokers to buy and sell securities.

Vicente Castillo, PDS Group president and chief executive officer, said that many people have applied to become licensed sales persons while some have opted to strengthen their contacts in the market before setting up operations in the provinces.

“As they see more opportunities in Cebu, they will be here. (But right now) there is a need for more salesmen because (we have) a new business model,” he said, referring to the fixed-income broker Internet order system (FI-BIOS) that the PDS Group recently launched.

The new Internet-based mechanism allows salesmen—who are registered with the Securities and Exchange Commission (SEC)—to input orders and transmit them through the Philippine Dealing and Exchange Corp (PDEx) based on real-time
price and market information.

For stakeholders, this medium of access is “critical” to bringing the nationwide community of fixed-income securities investors to a central marketplace.

The unveiling of the new market infrastructure was held in Cebu, which is considered a “key investment center” outside the National Capital Region with an “important role to play in the financial market.”

Castillo described the country’s investment climate as fixed income-driven, with many Filipinos inclined to start in the fixed income market and develop the capability to appreciate the performance opportunities in the equities market.

“It’s a natural progression. You cannot disintegrate the equities from the fixed income securities,” he said.

He added that the developing investor bases with increasing appreciation for long-term investments also prompt big corporations to source their money locally.

Fixed income security is a type of investment that pays a specific interest rate over time, such as bonds.

Equity investment, on the other hand, generally means the buying and holding of shares of stock in the stock market.

Castillo said investors in the fixed income market include individuals and institutions with investments ranging from P5,000 to P1 billion.

Bankers Association of the Philippines executive director Leonilo Coronel said the diversification of investment options in the financial market prompts the need for more SEC-registered salespersons who are “very important” front-liners in
educating and helping client-investors in deciding where to put their money based on their “risk appetites.”

He added that the need for more salespersons is also the result of market demand.

Castillo said that part of the plans of the PDS Group is to train more brokers for Cebu in the next few months.

Filed under: Banking/Money/Investment, Business

Invest, be opportunistic, bank official tells consumers

Sun.Star Cebu <> Tuesday, June 16, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

A BANK official urged consumers and business owners to continue to invest even during the global financial crisis.

“The crisis isn’t over. We are still experiencing the aftershocks of a devastating global earthquake. Our biggest enemy will be complacency and thinking that it is party time again,” said Alberto Villarosa, president and chief executive officer of Security Bank Corp.

He added that the present economic turmoil is also a chance for companies to “clean their houses and build a strong foundation.”

He said many businesses have gone beyond expectations, “making the move forward from this ordeal an easy task.”

“The key is to take a long view rather than a quarter-by-quarter approach. This rings true for the Philippines when the taipans’ fortunes were built during times when most people considered it absolute madness to invest,” he said in a speech during the 47th charter anniversary of the Rotary Club of Cebu West last week.

Rebound

He urged individuals and business owners to be opportunistic and to position themselves for the economic rebound by exploring new products, markets, processes and business models.

With interest rates at historic lows and as lending capacity remains high, he said there are opportunities for businesses, especially manufacturers, to put in capital expenditure that will enable them to be more competitive when the global economy makes a rebound.

“Unfortunately, there is a tendency for people or business owners who have been burned and have scars on their backs to bury their heads in the sand and just be on the defensive. This might cut losses but will never result in increase earnings over the long term,” he said.

In an interview with reporters, Villarosa said many Filipinos become conservative after getting “burned” for their investment. He said being conservative will not allow one’s financial resources to grow.

“Investments contribute to the improvement of the (country’s) economy,” he added.

He reminded banks—which, he said, have the tendency to tighten credit during financial turmoil—that they are in the business of risk management and not risk avoidance.

He said Security Bank noted a “healthy” demand for loans this year coming from large corporate to middle markets.

Security Bank will be increasing its loan portfolio while establishing itself in the middle corporate and consumer markets.

In his speech, Villarosa also urged companies to be vigilant and defensive.

“This is the time to shore up our defenses, to strengthen our balance sheets, to improve our processes and quality control. Stay liquid, don’t over leverage, hedge the bets,” he told members of the business community at the Rotary Club of Cebu event.

Filed under: Banking/Money/Investment, Business